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Hi, similar to your previous question, this is a good example for what the COM interfaces expose from InstallShield. As your two questions more or less go hand in hand, you will have no rela option but to use the COM interfaces...

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you may be able to use the dynamic linking of a folder. I have never used that. If you open the ISM, got to files, then drag and drop a new folder into you project, you should see the pop about dynamic linking.

I prefer to know what is intended to go into the MSI/ISM and add them as needed. That way i can set up the feature hierarchy properly and create new components for each file when needed. I can then set the component attributes to extract COM info at build, .NET settings etc.

Dynamic linking isn't the best solution, as I used to have problems in the past...
Using the COM interfaces IMHO is the best bet, as you have granular control and control all aspects of your build. That said, as VBScab has mentioned in the second post from the original poster, WiX is a good solution but you have to get it set up correctly first...